Sun Shareholders are not very happy about the recent $7.4 billion proposed acquisition offer from Oracle. They placed three class action lawsuits to block the planned merger with Oracle. Sun made this disclosure with the U.S. Securities and Exchange Commission. Sun Micro did not respond to the complaint. As per an expert, if Oracle is really interested to acquire SUN, the lawsuit may not be a deterrent because Oracle can raise the offer to keep the deal alive.
The lawsuits claims that the amount for the deal is “unfair and inadequate.” The tender price that was offered from Oracle seems to be a bargain. It was placed during the crucial time when Sun has been shopping itself around the industry. Ironically, Southeastern Asset Management, a group of Sun’s shareholders that increased their holding in the company throughout the course of 2008 as part of a move to influence management so that they can assess Sun’s